Prabowo targets a maximum budget deficit of 2.4 percent of GDP in the 2027 RAPBN

Jakarta — President Prabowo Subianto pledged that the government will continue to curb the budget deficit, targeting a deficit rate in the 2027 State Budget draft (RAPBN 2027) of less than 3 per cent of GDP, namely in the range of 1.80 per cent to a maximum of 2.40 per cent. Speaking before more than 400 members of the House of Representatives and a number of state officials, Prabowo emphasised that his administration would persist in reducing the deficit. ‘From the financing side, the deficit in 2027, the APBN deficit, will be kept in the range of 1.80 to a maximum of 2.40 per cent of GDP, and we will continue to strive to reduce this deficit,’ Prabowo said as he delivered the macroeconomic policy and fiscal policy framework (KEM-PPKF) for the RAPBN 2027 at a Plenary Session of the DPR in the Nusantara Building, MPR-DPR-DPD complex, Jakarta, on Wednesday. On the same occasion, Prabowo also targeted state revenue in the RAPBN 2027 to reach around 11.82 per cent to 12.40 per cent of GDP. ‘To support our various priority programmes, government spending is planned to be in the range of 13.62 per cent to 14.80 per cent of our GDP,’ the President said. In the same address, Prabowo emphasised that the APBN is not merely a state financial document but a tool of national struggle. ‘The APBN is a tool to protect the people, to strengthen the foundations and pillars of the nation’s economy, to ensure every citizen can live more prosperously, and as a guide for our journey ahead. With that awareness, we assemble the APBN as a shared commitment to realise the noble aspirations mandated in our Constitution,’ he said. It is noted that President Prabowo delivered in person to the DPR the macroeconomic framework and the KEM-PPKF for the RAPBN 2027 in Plenary Session No. 19 of the DPR for the Fifth Session Year 2025-2026. Prabowo thus becomes the first Indonesian president to present an initial RAPBN, covering the macroeconomic framework and the main fiscal policy guidelines, before DPR members. The plenary session was attended by 451 DPR members, for which a quorum was established by DPR Speaker Puan Maharani. In attendance were President Prabowo’s entourage, including Vice President Gibran Rakabuming Raka. Also present were members of the Red and White Coalition government’s Cabinet, among them Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono, and Coordinating Minister for Politics, Law and Security Djamari Chaniago. Also present were Finance Minister Purbaya Yudhi Sadewa, Foreign Minister Sugiono, State Secretary Prasetyo Hadi, Energy and Mineral Resources Minister Bahlil Lahadalia, and Agriculture Minister Andi Amran Sulaiman. Subsequently, Bank Indonesia Governor Perry Warjiyo, OJK Chairman Friderica Widyasari Dewi, and SIS Deputy Chair Anggito Abimanyu also attended. The DPR’s Plenary on Wednesday discussed three main agenda items: the government’s delivery of the KEM-PPKF RAPBN 2027 for the 2027–2028 Budget Year; the Legislation Body’s report on the evaluation of the second changes to the 2026 Priority Prolegnas; and a faction’s opinions on the Bill proposed by Commission III of the DPR regarding amendments to Law No. 2 of 2002 on the Indonesian National Police, continued with decisions to become a DPR proposed Bill.